This article focuses on gold’s fundamental and technical outlook, pinpointing significant catalysts for volatility and essential price thresholds that could act as support or resistance in the coming days.
Gold has lacked directional conviction since the beginning of 2024, with prices oscillating between technical resistance at ~$2,065 and horizontal support at ~$2,005. Although bullion’s prospects seemed more positive a month ago, the bullish thesis appears to be on hold for now, especially after the Federal Reserve indicated that it is in no hurry to start lowering borrowing costs.
Focusing on potential outcomes, any upside surprise in the official CPI numbers relative to consensus estimates, particularly in the core metrics, should be bearish for gold. This scenario is likely to induce traders to scale back dovish interest rate expectations, which currently envision 110 basis points of easing through year’s end, boosting yields and the
Wondering how retail positioning can shape gold prices? Our sentiment guide provides the answers you are looking for—don't miss out, get the guide now! In the event of a resistance breakout, the focus will be squarely on $2,085. From there, further gains may lead to renewed interest in the all-time high in the vicinity of $2,150. Meanwhile, a breach of support could spark a pullback towards $1,990. Additional losses past this threshold could bring attention to the 200-day simple moving average near $1,995.Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors.